In the current environment, when OPEC+ efforts coupled with geopolitical risks and the Venezuelan crisis support rising crude oil prices, the upcoming sanctions add to the already wide optimism in the industry as conditions in the global oil market continue to tighten, despite the record US shale production. At this stage, the prospects really look , which on the other hand may prompt some OPEC members to pull out of the pact. Further fate of the agreement will be discussed at the key June meeting of producers.
In the short-term, there is a risk of profit taking at the current attractive levels, especially ahead of the weekend and fresh Baker Hughes data due tomorrow. Should Brent fail to keep above the $77 level in the nearest future, the price may retreat towards the $76,30 area, where buyers could reemerge.